Group Members: Shruti Marfatia Rochelle Fernendes Dhairyasheel Powar Manu George Ritesh Gulrajani Succession Planning
What is succession planning? Succession planning is a process of determining critical roles within the company,identifying and assessing possible successors and providing them with the appropriate skills and experience for present and future opportunities.
Succession planning comprises of : • Recruitment and staffing • Training and development • Performance and compensation management • Talent management
Key issues for an effective succession plan • Succession planning must be an integrated HR process. • Identify what skills the company will require in the future. • Identify critical positions in the company. • Identify high performers to step into those positions.
Contd. • Analyse the workforce for eligible retirements. • A systematic approach for identifying, nominating and selecting potential successors must be established. • Succession planning must include a system for providing feedback and encouragement to successors.
Why Succession Planning is necessary? • Engages senior management in a disciplined review of organizational talent. • Guides development activities of staff. • Brings HR systems into alignment. • Assures continuity of key positions / Avoids transition problems. • Assures new managers are prepared for their jobs. • Focus on Organizational Effectiveness. • Less time and expense to source talent to fill. • The individuals identified in the plan will eventually be responsible to tackle future challenges.
The organization is prepared to deal with sudden losses of key people. • Less turnover. • It will help the company to create future potential leaders. • Succession planning helps company "build bench strength." • It helps company to decide where people belong on the bus. • To retain superior employees because they appreciate the time, attention, and development that company is investing in them.
Succession Planning vs. Replacement Planning Replacement planning: is about immediate needs, a point in time assessment of the availability of key back-ups who can step in and contribute quickly Succession planning: is concerned with longer range needs and the development of talent to meet those needs.
A Step by Step Model to establish and maintain a Succession Planning Program
Succession Planning Software (EmpXtrack) Allows identification of key positions in the organization and their mapping to required skills, competencies, job descriptions, qualifications and experience profiles. Facilitates identification of employees who meet the requirements for these key positions. Sophisticated search mechanisms are available for this.
Reasons for Succession Failure • Attempt Succession Planning Without Other Strategic Plans • Procrastinate • No goals • Sell to an Insider • Ignore Training • Keep Succession Plans a Secret • Develop a Succession Plan Once
CASE STUDIES: • General Electric Inc. • TATA Group
CASE STUDY • Succession Planning at General Electric Inc. • GE adopted succession planning right from the mid-1900s. • At GE, succession planning was not confined to only the top management, but was applied across all tiers of management • Annual Human Resource Reviews (popularly called Session C) had been at the heart of succession planning at GE. • The succession planning by Welch for his post had started way back in 1994. • McNerney and Nardelli were taken on as the CEOs of 3M and Home Depot.
CASE STUDY – 2 • TATA GROUP • Which has an employee strength of about 2,80,000 • Succession planning at different levels within various group companies . • Tata group will now follow a four-box rating approach. • This approach comprises sharp distinctions such as, ‘not met objectives’, ‘met objectives’, ‘significant over performance’ and ‘outstanding’. • It will be an ongoing process.
CONCLUSION • Success will sustain and grow only when it is passed on into safe hands, and this is where the seed of succession planning takes its roots.
References • www.empxtrack.com • www.successionwizard.com • www.bizmonthly.com/12_1997/hepple.html • www.icmrindia.org • http://humanresources.about.com/od/glossarys/g/successionplan.htm • www.successionplanning101.com • http://www.halogensoftware.com/files/PDF/whitepapers/Ten_KeySteps_in_SuccessionPlanning.pdf